Eliminating Banking Intermediation System : Sharia House Ownership in Social System Implication
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Eliminating Banking Intermediation System : Sharia House
Ownership in Social System Implication
Asfi Manzilati1, Fawri Nashr2, Silvi Asna3
1
Brawijaya University, Malang, Indonesia, asfi@ub.ac.id/ asfi6886@gmail.com
2
Brawijaya University, Indonesia, fawry.nashr@gmail.com
3
Brawijaya University,Indonesia,silvi.febub@gmail.com
ABSTRACT
The purpose of this study is to find out the efforts to fulfill sharia house ownership in the social system without
a banking intermediation system. By using phenomenological qualitative research methods, the results of the
study show that the effort to fulfill sharia house ownership is by social interaction between the producers and
consumers. On the producer side, there is initiation and implementation of joint financing between investors by
forming a community of sharia property developers. In this community, there is also a supervision system for
the mechanism of fulfilling house ownership. On the consumer side, there is an exciting finding. The dimension
of religiosity is more important than the economic aspect.
Keywords: Sharia House Ownership, Social System, Religiosity Demension, Economic Dimension.
1
I. INTRODUCTION
1.1 Background
House is a basic need for every person (family). The house is also the place where the socialization
process takes place when an individual is introduced to the norms and habits that apply to small groups
(families) and then used to social activities in the community. That is, every house has a value system that
applies to its citizens. The value system taught can be different from one home to another, depending on the
region or the condition of the local community. (Sarwono in Budihardjo, 1998). At present, the problem of
homeownership is becoming increasingly complex. In terms of the need for adequate housing for the
community experiencing difficulties due to limited land. Data DJA (Direktorat Jenderal Anggaran) from the
Ministry of Finance (2015), the housing needs that still have not been met (backlog) reached 7.8 million.
Whereas in 2014 the number of households reached 64,923,944 units while the number of houses owned was
only 51,911,837 units. So the need for families to own a house is very high. However, from a material
standpoint, homes are also an asset (like land) whose prices continue to increase over time. The limited
financial condition of the community is an obstacle to owning a home. That is because the allocation of income
is more widely used to meet daily needs.
This condition was captured by banks to finance their ownership because cash purchases were
increasingly unaffordable. Almost all banks, both conventional (interest-based) and Islamic, offer house
ownership financing. The most common solution offered by conventional banks is to offer housing loans, but
they often cause problems for the community because of the still banking rules and complicated requirements,
such as insurance, usury, fines, penalties, confiscation of houses, BI checking, and contracts that are baby. The
public housing loan (KPR) system offered by conventional banking is not following sharia because it contains
elements of usury that are forbidden in Islam.
On the other hand, the awareness to stay away from usury significantly increases now. A new
paradigm emerged when the presence of the MTR (Masyarakat Tanpa Riba) community. MTR has been
formed and spread in almost 70 cities in Indonesia. That is, the community began to have a shift in
interpreting usury because it is not only an understanding of the concept but has run its practice (Nurlaela,
2018). The aim of the MTR is to run a business with the prospect of no usury where the members are
developers, landlords, and other companies in the property and real estate fields. Instead of using financing
from Islamic banks, some people consider the system offered by Islamic banks as not fulfilling sharia rules.
1.2 Objective
This awareness of avoiding usury has led to a method of house ownership schemes which are
believed to fulfill sharia principles without involving the development of intermediary systems. Therefore, the
purpose of this study is to find out the efforts to fulfill sharia house ownership in the social system without a
banking intermediation system.
II. LITERATURE REVIEW
2.1 Mortgage Products that are at Risk of Being Usury
The role of banks to meet the needs of public funds is increasingly needed. One of them is the
demand for investment and consumer credit as a long-term financing option. One example is KPR (Mortgage
Credit). The high demand for housing loans makes banks provide mortgage products. However, the fact is
that high conventional bank interest rates actually burden the public. Therefore, Islamic banking seeks to
provide Sharia mortgages with the aim that the public is not burdened by high conventional mortgage rates
2
(Sari, 2013). The scholars agree that buying a house through bank funding (debt agreement) is forbidden
because the agreement is considered as an interest-bearing loan that contains usury (Ash Shawi & Al Muslih,
2001). This transaction is detrimental to the buyer because monthly installments depend on interest rate
fluctuations. The concept of home loans is still widely applied in conventional banks in Indonesia. The
conventional housing loan contract is the principle of lending and borrowing with interest as a variable. This
transaction has an element of usury because it uses the interest system, which is the cost of the debt. By law,
Islam can be said to be haram so it should be abandoned. The KPR system is run with the bank providing a
loan of money and not physically as a homeowner even though the lender confiscates it when the borrower is
unable to pay it.
Mortgage financing products used in Islamic banking have differences with mortgages (Home
Ownership Loans) in conventional banking. This is the implication of the differences in principles applied
between Islamic banking and conventional banking. Islamic banks offer the concept of profit-sharing (profit
and loss sharing) as a substitute for conventional banking interest systems so that customers will not be
complicated by fluctuations in financing installments. In this homeownership financing product, there are
several differences between Islamic banking and conventional banking including the implementation of the
credit system and mark up the system, the ability and bargaining ability between customers and banks,
financing procedures and so forth (Haris, 2007).
Sharia mortgage product design does not recognize interest but uses an agreed home sales price,
coupled with profits for banks ranging from 15%-20% per year. Mathematically, Sharia KPR actually does not
differ much in conventional monthly mortgage payments, even though the accumulated debts look a little
more expensive. However, the advantage of using Sharia mortgages is if the interest rate rises the customer
forever repays an agreed amount from the beginning to the end of the credit period. In terms of contracts
(contract) on Islamic banking mortgages using murabaha. Murabaha means a sale of goods worth the goods
plus agreed profits. Murabaha is carried out based on mutual willingness or pleasure as well as not out of the
rules of the Islamic religion.
The existence of Islamic banking mortgages is considered to cause debate still. Islamic bank
mortgage products in practice apply the insurance system. The existence of a system of fines on Islamic
banking mortgages if there is a late payment of home loans, then made the sale of traded houses/loans as
collateral. Penalty cases that are still contained in Sharia Banking Mortgages if they are late in making
mortgage payments are also a type of usury. So that people no longer want to use mortgages even from sharia
banking. Therefore, contradictions emerged among the scholars (fuqaha) related to the operation of the bai 'al-
murabahah contract on Islamic banking. That is because the murabaha contract is considered to be very similar
to a conventional system using a fixed interest rate (flat fixed). As a result, doubts about Islamic bank
mortgages are following Islamic principles or not still a polemic.
2.2 Funds Transfer Method; Social System
The transaction process in the financial sector has evolved from barter to complex methods. This
development is moving following the demands of society and technology. Although the ways of transferring
funds have varied, they basically must carry out at least one basic function, namely collecting funds from the
surplus group to the deficit group. The methods can be done through three ways, including direct finance,
semi-direct finance, and indirect finance (Hempel et al., 1994).
The direct finance method occurs when the lender deals directly with the borrower without
involving assistance from a third party (financial institution). The direct finance method is desirable because of
the minimum transaction costs (Yurchuck et al., 1976). The agreement that has already taken place produces
3proof of debt (financial claims) as a form of evidence of the direct transfer of funds. The ease shown is
inseparable from the disadvantages when choosing to do this method. First, it is quite difficult to find both
parties who have the same desires regarding the number of funds and loan term. This is very difficult to do
without assistance from third parties such as financial institutions because of limited access and information.
Second, the risk faced is quite high, where delays or defaults are very likely to occur. This risk can actually be
reduced by applying collateral. Third, it requires a particular time to meet each other directly between lenders
and borrowers. If seen from the weaknesses, it does not mean this method cannot be done, but the
consideration is efficiency even though direct finance is considered easy.
Lending and borrowing transactions involving intermediaries (third parties) such as brokers,
dealers, investment bankers are called the semidirect finance method. The lending and borrowing process is
carried out depending on the intervention of a third party. Semidirect financing is an improvement of the form
of direct finance where transaction costs can be reduced. Semidirect finance is usually done on a stock
exchange. The disadvantage of this method is that the security owner is faced with liquidity risk. Users of this
method can experience losses at any time and cannot be predicted when the market experiences lethargy or
stagnation. Liquidity risk can be reduced if intermediary institutions such as banks, insurance companies,
pension funds, mutual funds, etc. play a more complex role. The involvement of intermediary institutions in
the financing process is included in the indirect finance method. The indirect finance method is preferred by
the community because its management is quite good, so the risk faced is smaller. Users of this method are
only charged for services related to the provider. Surplus units hold their money in the form of secondary
securities while deficit units in the form of primary securities (Rivai et al., 2007).
The relationship between intermediary institutions and usury is very vulnerable when it touches on
the aspect of fund. The element of capital becomes the backbone of one's business, where the injection of funds
used to build a business often ignores the halal element (Setiawan, 2017). Avoidance of usury in relation to the
implementation of housing loans is sought after. As a result, individuals with the same goal form a
community with the aim of running a business without usury. So that the method of transferring funds from
surplus to deficit no longer involves banks as intermediaries. The non-involvement of the bank was intended
because fears of financing usury are still in effect. In the end, the fund transfer method no longer uses indirect
finance. Based on the phenomena that occur as if the method returns by relying on direct finance and
semidirect finance. From the previous explanation shows that there is a tendency to the financing cycle with
the social system method (direct and semidirect) in the case of the purchase of home ownership because of the
avoidance of involvement of intermediary institutions.
2.3 Religiosity and Economy as Forms of Demand
In language, there are three terms; each word has a different meaning, namely religious, religious,
and religious. Slim (in Rasmanah, 2003) defines the third term from English. Religion comes from the word
religion as a form of a noun which means religion or belief in the existence of something natural power over
humans. So the meaning of religiosity is the same as the religious meaning where the word is basically a
religion. While religiosity is more on the aspect of 'heart' and personalization of the institution, so it needs to
be distinguished from the juridical aspects, rules, and punishment. Also, from the word religion, the term
religiosity emerges.
In economics, the term demand (demand) has a certain meaning, which always refers to a certain
relationship between the number of goods or services that people will buy and the price of the goods or
services. Demand is the number of goods or services that are willing and able to be purchased at various
possible prices, for a certain period of time, assuming other things remain the same (Gilarso, 2007). Nasution
4et al. (2006) define the demand for goods and services is the number of goods or services that people are
willing to buy at various price levels in a given period. That is, people are willing to buy to emphasize
consumption which is influenced by price levels. The purpose of the word willing is that consumers have the
desire to buy an item or service and at the same time have the ability, namely money or income. Knowledge is
often referred to as purchasing power.
2.4 Previous Study
Subsequent research written by Aliah (2010) regarding customer preferences for sharia mortgages
shows the results stating that the factors influencing customers in making decisions to choose Sharia
mortgages at Bank BTN Syariah Bogor Branch include low cost, avoidance of interest, easy procedures, long
repayment period, and fixed costs until the end of the contract.
In a study conducted by Amri (2012) concluded that the factor of religiosity is the dominant reason for
customers of Bank Muamalat in using Sharia Mortgages. The five main reasons for customers in choosing
Sharia mortgages based on the most choices are because (1) the Customer is aware of the imposition of an
illicit interest system, (2) In choosing a KPR the customer considers sharia principles, (3) No penalty is
imposed on the customer when paying faster, (4) Bank Muamalat's mortgages are in accordance with sharia
principles, (5) Low late payment penalties.
The research conducted by Putra (2017) aims to describe the transaction scheme conducted by
Developer Properti Syariah (DPS) in general and describe the general characteristics of respondents of home
consumers through DPS. The results showed DPS has a usury-free home loan scheme without going through
banks, both conventional and sharia. In addition to the bankless system, DPS also does not involve insurance,
without fines, without confiscation. The contract used in the DPS scheme is istishna and ba'i bi dayn wa taqsith.
III. METHODOLOGY
This type of research is qualitative research because it wants to see the decision-making process
behind the phenomenon of buying a home without usury. As for what will be examined are the dimensions of
religiosity, namely: 1) belief; 2) knowledge; 3) experience, and economic dimensions consisting of factors of
price, location, facilities, environment, housing conditions, and excellence of the Sharia mortgage system.
Qualitative research was chosen because it is more sensitive in getting explanations from informants. Besides
that qualitative research was chosen with the aim to explore, describe, or develop knowledge of how reality is
experienced (Moleong, 2005).
3.1 Data
This research will be conducted in 2 Sharia Housing (Cluster Azzura and Cluster Zafira) located in
Bogor, West Java. The choice of location for this research is because Bogor was the first city for the
establishment of Sharia Property Developers and has produced quite a lot of housing projects, both in the
town and district of Bogor, the most among other cities.
3.2 Model Development
This study uses a qualitative phenomenological approach in two sharia housing in Bogor. This
method was chosen with the reason to know more about how the social system as formed to fulfill
homeownership without a banking intermediation system. The depth is related to philosophical ideas until
decisions are made both from the dimensions of religiosity and the economic aspect. The aim of
phenomenology research is to describe what the participants have in common about how they experience the
phenomenon (Creswell, 2010). Unstructured interview techniques are used to help researchers answer the
5questions in this study.
3.3 Method
In this study, the unit of analysis is the dimension of religiosity and the economic dimension in the
decision to purchase a home without usury. The selection of informants is also based on those in accordance
with the criteria of the informant. So the information is consumers who buy houses with the Islamic system.
IV. RESULT AND ANALYSIS
4.1 Analysis
The location of this research was conducted in Azzura Cluster and Zafira Cluster located on Jalan Kyai
H. Ahmad Sya'yani No.23, Mekarwangi, Tanah Sareal, Bogor City, West Java. The location of the election is
considered strategic with easy access to transportation and for workers in the capital city of Jakarta who want
to find a place to live because the condition of the town is not too dense and is considered more beautiful
compared to other capital buffer areas such as Bekasi, Tangerang or Depok. Azzura Cluster Housing (Figure 1
and Figure 2) and Zafira Cluster (Figure 3) are housing products from Mumtaz Property which are members
of Developer Properti Syariah (DPS), sharia schemes in terms of the contract used by Mumtaz Property using
the contract from the DPS that oversees it. Therefore, DPS also has a sharia supervisory board, but because
DPS is not in the form of a financial institution, the supervisory board of the DPS is not from the national
sharia board (DSN).
Source: Author (2019)
Figure 1. Azzura Cluster Housing Gate
6Source: Author (2019)
Figure 2. Azzura Cluster Environment
Source: Author (2019)
Figure 3. Zafira Cluster Housing
As a property developer, Developer Properti Syariah (DPS) has a different concept from property
developers in general. DPS uses a sharia home loan scheme without involving banks; the scheme that is
carried out only consists of the developer and consumers only. In addition to not involving banks, the
difference between DPS and bank home loans is that DPS does not impose fines, confiscations, penalties, and
does not include insurance.
4.1.1 Producer Side
In general, the social system that is formed is the existence of a syirkah (partnership) system in
providing funds for the construction of houses while transactions between consumers and producers
(developers) use a sale and purchase contract. On the producer side, there is initiation and implementation of
joint financing between investors by forming a community of sharia property developers. In the financing
process, consumers initially only pay a sign/down payment. Subsequent financing was met from sharia funds
collected by members belonging to the sharia property developer community. In other words, there is no
financing from any financial institution, including banks. In this community, there is also a supervision system
for the mechanism of fulfilling house ownership. That is, sharia compliance with the transaction mechanism is
also an essential part of this social system.
7The initial formation of the Developer Properti Syariah (DPS) aims to justify the harmony in the
purchase of a house, using an alternative scheme as a way to not burden the public due to the KPR banking
products. The source of funds obtained from advance payments by consumers is used by developers to
finance development. The issue of payment can be made in installments with a fixed repayment period of 5,
10, and 15 years. The installment amount does not change from the beginning to the end of the payment
because it is not affected by interest rates.
The developer uses the isthisna contract (wake-up message) to prospective buyers, and the consumer
will pay the booking fee as a sign of purchase (initial agreement). The developer then surveys the location of
the house and understands the specifications that will be purchased by consumers, then the developer will
process consumer data as a form of verification, if agreed by the developer, the house price and payment
method will be calculated. When both parties have agreed on a purchase, the consumer makes a down
payment of 30% of the total house price. If the down payment has been paid by the buyer, the house will start
to be built. Furthermore, the remaining debt can be paid in installments by consumers with a predetermined
tenor. The developer manages the incoming funds coming from consumers to build a house, and the
developer priority is to create a new sample house and then social facilities & public facilities. The developer
has its cash flow and time management settings.
4.1.2 Consumer Side
On the consumer side, there are interesting findings. The dimension of religiosity is more important
than the economic aspect. The dimensions of religiosity are religious beliefs, knowledge, and experiences.
Faith is the main reason consumers buy a house with a sharia system as a form of devotion to Allah.
Knowledge aspect is shown by understanding the necessity to avoid usury.
Meanwhile, the aspect of the experience of diversity is felt by consumers, such as their prayers are
granted and are afraid to sin if they do not abandon usury activities. In the economic dimension, the strategic
housing location and the atmosphere of the city of Bogor, which is still comfortable and free of flooding for
home buyers. The price of a house with a sharia system that is more expensive than the fulfillment of a
conventional system still chosen by consumers shows that the dimensions of religiosity take precedence over
the economic dimension.
In detail there are three aspects of religiosity, namely the dimension of belief that makes consumers
want to buy a house with a system that is in accordance with the Shari'a, the dimension of knowledge
underlying consumers avoiding usury activities in buying a house, then the dimension of religious experience
where consumers feel grateful because their prayers are answered by God to find a home by using the concept
of financing that is considered free from usury. Consumers want to try to live according to the Shari'a, one of
which is not buying a house using a conventional bank housing loan system. Consumers have the same
principle that is fulfilling their obligations by continuing to try their best to stay away from the prohibition as a
form of obedience to God.
4.2 Results
In general, the social system that is formed is the existence of a syirkah (partnership) system in
providing funds for the construction of houses while transactions between consumers and producers
(developers) use a sale and purchase contract. On the producer side, there is initiation and implementation of
joint financing between investors by forming a community of sharia property developers. In the financing
process, consumers initially only pay a sign/down payment. Subsequent financing was met from sharia funds
collected by members belonging to the sharia property developer community. In other words, there is no
financing from any financial institution, including banks. In this community, there is also a supervision system
8for the mechanism of fulfilling house ownership. That is, sharia compliance with the transaction mechanism is
also an essential part of this social system.
On the consumer side, there are interesting findings. The dimension of religiosity is more important
than the economic aspect. The dimensions of religiosity are religious beliefs, knowledge, and experiences.
Faith is the main reason consumers buy a house with a sharia system as a form of devotion to Allah.
Knowledge aspect is shown by understanding the necessity to avoid usury.
Meanwhile, the aspect of the experience of diversity is felt by consumers, such as their prayers are
granted and are afraid to sin if they do not abandon usury activities. In the economic dimension, the strategic
housing location and the atmosphere of the city of Bogor, which is still comfortable and free of flooding for
home buyers. The price of a house with a sharia system that is more expensive than the fulfillment of a
conventional system still chosen by consumers shows that the dimensions of religiosity take precedence over
the economic dimension.
V. CONCLUSION AND RECOMMENDATION
5.1 Conclusion
The religious dimension plays a role for a consumer for the decision to buy a house using the Sharia
mortgage system. The role of a consumer's religiosity dimension in the purchase of a home is only three
aspects which in detail are the underlying dimensions of belief, the dimension of knowledge, and the
dimension of religious experience. The role of the economic dimension that influences a consumer's home
buying decision is the strategic location of housing, the atmosphere of Bogor city that is still comfortable and
free from flooding for home buyers. There is a common desire between producers and consumers to meet
homeownership. On the one hand, producers want to do business without touching usury. The other side of
consumers needs a house with a financing system without usury. In the end, they are brought together in a
social community without involving the role of the bank (bankless) in completing home purchases
5.2 Recommendation
Based on the results of research on the role of the dimension of religiosity and the economic dimension to
the purchase of houses with the sharia system, the advice given is expected to help the parties directly or
indirectly related through this research. Some of the suggestions given are:
1. For Muslim communities who want to buy a house in order to understand the contract scheme based on
sharia rules as a solution to meet the needs of the house, in order to avoid transactions that are
forbidden by the Sharia.
2. For other property developers to implement a sale and purchase agreement based on sharia principles
so that it is beneficial for Muslim consumers. The goal is to be released from the sale and purchase
which contains elements of usury, especially in the purchase of a home.
.
9REFERENCES
Aliah, W. (2010). Preferensi Nasabah Terhadap Kredit Pemilikan Rumah (KPR) Syariah (Studi Pada Bank BTN Syariah
Cabang Bogor) (Vol. UIN Syarif Hidayatullah Jakarta). Jakarta: Skripsi. UIN Syarif Hidayatullah.
Amri, K. (2012). Analisis Faktor-Faktor yang Mempengaruhi Nasabah Dalam Pemilihan KPR Syariah: Studi Kasus
Bank Muamalat Indonesia, TBK (Vol. Universitas Indonesia). Jakarta: Skripsi. Universitas Indonesia.
Antonio, M. S. (2001). Bank Syariah: Dari Teori Ke Praktik (Cetakan 1 ed.). Jakarta: Gema Insani Press.
Ash-Shawi, S., & Al-Muslih, A. (2001). Fikih Ekonomi Keuangan Islam. Jakarta: Darul Haq.
Baits, A. (2017). Ada Apa Dengan Riba? Yogyakarta: Pustaka Muamalah Jogja.
Budiharjo, E. (1998). Percikan Masalah Arsitektur Perumahan Perkotaan. Yogyakarta: Gadjah Mada University
Press.
Creswell, J. (2010). Research Design: Pendekatan Kualitatif, Kuantitatif, dan Mixed. Yogyakarta: PT Pustaka Pelajar.
DJA(Direktorat Jenderal Anggaran). (2015). Peranan APBN dalam Mengatasi Backlog Perumahan Bagi Masyarakat
Berpenghasilan Rendah (MBR). Retrieved September 23, 2019 from
http://www.anggaran.depkeu.go.id/content/Publikasi/Kajian%20dan%20artikel/Kajian%20Peranan%2
0APBN%20dalam%20Mengatasi%20Backlog%20Perumahan.pdf
Gilarso, T. (2007). Pengantar Ilmu Ekonomi Mikro. Yogyakarta: Penerbit Kanisius.
Haris, H. (2007). Pembiayaan Kepemilikan Rumah (Sebuah Inovasi Pembiayaan Perbankan Syari’ah). La Riba:
Jurnal Ekonomi Islam, 1(1), 113–125.
Hempel, G. H., Simonson, D. G., & Coleman, A. B. (1994). Bank Management: Text and Cases (4th ed.). Canada:
John Wiley & Sons, Inc.
Moleong, J. L. (2005). Metodologi Kualitatif Edisi Revisi. Bandung: PT Remaja Rosdakarya.
Nasution, M. E., Setyanto, B., Huda, N., Mufraeni, M. A., & Utama, B. S. (2006). Pengenalan Eksklusif Ekonomi
Islam. Jakarta: Kencana Media Group.
Nur, E. (2017). Riba Dan Gharar: Suatu Tinjauan Hukum Dan Etika Dalam Transaksi Bisnis Modern. Al-
'Adalah, 12(1), 647-662.
Nurlaela, N. (2018). Masyarakat Tanpa Riba (MTR): Sebuah Paradigma Baru. Retrieved September 23, 2019 from
https://www.mediaoposisi.com/2018/04/masyarakat-tanpa-riba-sebuah-paradigma.html
Putra, R. (2017). Faktor-Faktor Yang Memengaruhi Keputusan Pembelian Rumah Dengan Sistem Syariah Tanpa Bank
(Vol. Institut Pertanian Bogor). Bogor: Skripsi. Institut Pertanian Bogor.
Rasmanah, M. (2003). Hubungan Religiusitas dan Pola Asuh Islam Dengan Kecerdasan Emosional Pada Remaja.
Yogyakarta: Doctoral dissertation Universitas Gadjah Mada.
Rivai, V., Veithzal, A. P., & Idroes, F. N. (2007). Bank and Financial Institution Managent. Jakarta: Raja Grafindo
Persada.
Sari, P. P. (2013). Perbandingan Kredit Pemilikan Rumah Pada Bank Konvensional Dengan Pembiayaan
Kepemilikan Rumah Pada Bank Syariah. Jurnal Akuntansi AKUNESA, 1(2), 1-20.
Setiawan, I. (2017). Pengembangan Bisnis Tanpa Riba. Tahkim, XIII(2), 17-30.
Yurchuck, R. A., Attorney, Columbus, & Ohio. (1976). The Use of Existing International Loan Mechanisms by
Savings Associations. International Business Lawyer, 4(2).
10You can also read
